Daily Chart Art – August 9, 2010

EURCHF: 4-hour

PoD Chart

Hmm, there’s nothing like an ascending channel to start the week, don’t you think? It seems to me that EURCHF is trading within an ascending channel, and is currently right smack in the middle of it. Stochastics is also in the middle ground, although it seems to have a slight downside bias. Will the pair go along the channel all the way to the 1.3662 support, or will it climb to as high as resistance at the 1.4000 handle?

EURJPY: 1-hour

PoD Chart

Is EURJPY in for a fall? I don’t know about you, but it looks like those lower highs are starting to form a descending triangle to me! My good ol’ buddy stochastics is also tells me that it’s time to sell, as the pair seems to be overbought. Be careful, though, as the pair is having a hard time closing below 112.80, a significant support level. If the pair does break support, 112.45 might be a sweet spot to set your stops.

EURUSD: 4-hour

PoD Chart

And last but not least, the favorite of them all – EURUSD! Just in case you’ve been living under a rock, lemme bring you up to date. The pair has been in a nice uptrend the past couple of months, and it seems that the euro bulls are aiming for the 1.3500 handle. Be careful though, as I do see some potential bearish divergence forming on the 4-hour chart. If sellers decide to come back and play, look for a down move to former support around 1.3150. Watch out for a candle close below the rising trend line, it may just signal that the uptrend is coming to an end!